Gazprom on Monday sent Naftogaz Ukrainy an official proposal endorsed by head Alexei Miller on the extension of the existing contract or conclusion of a new agreement on gas transit via the Ukrainian territory for a period of one year in light of forecast demand for gas by European consumers in 2020.

In the proposal, Gazprom indicates that a necessary condition for extension of the existing contract or concluding a new one must be a waiver by both sides of all mutual claims in international arbitration and a cessation of all legal disputes, the company's press service said. Furthermore, other terms listed are: the reversal of a decision by Ukraine's Antimonopoly Committee to levy a fine against Gazprom for allegedly misusing its monopoly position in the Ukrainian gas transit market and a withdrawal of a request by Naftogaz for an investigation by the European Commission of the Russian company.

Gazprom is also waiting to hear the Ukrainian side's position on readiness to buy Russian gas directly beginning in 2020.

"Copies of the formal proposal have been directed to Ukrainian Minister of Energy and Environment Protection Oleksiy Orzhel and European Commission Vice President Maros Sefcovic," Gazprom said.